ET Now: If I look at the PE multiple for TCS, it is 25 times, if I look at the PE multiple for Infosys, it is 12 times. So where is margin of safety and risk versus reward? Where do you think more money will be made?

Prakash Diwan: No, I agree what TCS has done in the past in terms of growth. What it promises to do definitely warrants a better valuation but it is definitely stretched. Just a couple of months back when there was a state of despondency in terms of the entire sector, TCS at 1180 was looking difficult to sustain and suddenly you are seeing 1400 levels.

It is more to do with perception, the fact that HCL is already priced fully, Infosys is not yet looking at attracting more money. TCS has been a safe haven of sorts for ETFs and keep the exposure to IT as a sector intact but somewhere closer to 1380-1400, it gets definitely stretched and you could probably see some sort of a correction and particularly if the environment in the US does not continue to be as promising as last couple of weeks have sounded. So look for a correction in TCS at those levels but at this point I would definitely seeing it on its way to getting stretched.